How to trade Nifty for week starting 30/05/2016

Bullish Possibility: 

In our last post on Nifty weekly update we mentioned: 

if Nifty trades above the falling channel (blue) it will be bullish and can target the upper edge of the consolidation zone which is at 7972 approximately. A successful breakout above 7808 will result in targets like 8323, 8650 and 9191 respectively.

So let's analyze where we are now: 

Nifty Daily Chart

In the above daily chart of Nifty we are now trading comfortably well above the consolidation range (the grey area in the chart) hence the targets are now 8323 and 8650. Support lies at 7808 (the upper band of the consolidation area) and 7972 (which was resistance in the past). Hence play long with SAR at 7972. 

Bearish Possibility: 

Bearish possibility is muted currently as long as we are trading above 7808-7972 zone. 

 

Summary: 

1) Hold longs with 7972 as SAR with filter 20 points.

 

Final Words: 

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Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!!